Warren Buffett buys a further 75m Apple shares - report

Hong Kong - Berkshire Hathaway bought an additional 75 million shares of Apple, bolstering its stake and backing the iPhone maker’s ability to generate profits, CNBC reported, citing Chairperson Warren Buffett.

The stock purchase adds to the almost 170 million shares that Berkshire Hathaway already owns and would see it overtake State Street Corporation to become Apple’s third-largest investor, according to data compiled by Bloomberg. The Cupertino, California-based company was already Buffett’s biggest shareholding.

Buffett’s announcement comes just days after Apple reported quarterly sales and profit that topped analyst estimates on surging services as revenue rose at the fastest pace in more than two years.

The results helped end a recent swoon in Apple shares amid concern its flagship iPhone X model was struggling to win consumers.

“It is an unbelievable company,” Buffett said, according to CNBC. “If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States.”

Berkshire Hathaway is holding its annual meeting this week in Omaha, Nebraska.

While Apple still gets more than 60% of its revenue from iPhones, services are playing an increasingly important role as growth in the overall smartphone market slows.

Chief Executive Officer Tim Cook sells a growing array of services through a base of more than 1.3 billion Apple devices, including music, cloud storage, movies and apps. Revenue from services surged 31% to a record $9.2bn in the most recent quarter.

An Apple Music subscription costs $10 per month (unless they’re on a family plan), and the number of paying users recently hit 40 million. The middle tier for iCloud storage costs $2.99 a month.

The company now has 270 million paid subscribers across applications and its own services, up by 100 million from the same period a year ago.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
18.01
+0.3%
Rand - Pound
19.33
+0.0%
Rand - Euro
17.28
+0.6%
Rand - Aus dollar
11.59
+0.7%
Rand - Yen
0.12
+0.5%
Gold
1,629.04
+0.4%
Silver
18.40
+0.2%
Palladium
2,076.27
+1.6%
Platinum
853.51
+0.1%
Brent Crude
84.06
-2.5%
Top 40
57,621
+0.6%
All Share
64,026
+0.6%
Resource 10
56,997
+1.4%
Industrial 25
79,272
-0.3%
Financial 15
14,209
+1.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders